FTC aims to better fight scams

The Federal Trade Commission (FTC) is signaling a major shift in how it handles consumer fraud, and it could change how you partner with technology and payment providers. The agency is looking to update the Telemarketing Sales Rule (TSR) to hold 'on-ramp' service providers more accountable. This means the tech companies that facilitate payments, financing, and communications could face legal consequences if their systems are used by scammers to defraud customers. For a retail operator, this matters because it will likely lead to stricter vetting processes from your financing and payment partners. Expect your lenders and payment processors to roll out more rigorous identity verification and 'Know Your Customer' (KYC) requirements. While this adds a layer of friction to the checkout process, it is designed to protect your business from the fallout of fraudulent transactions and chargebacks. The FTC is specifically looking at how scammers use digital payment tools to bypass traditional banking safeguards. As these rules evolve, the technology platforms you use to offer Buy Now, Pay Later (BNPL) or lease-to-own options will likely become more aggressive in monitoring transaction patterns. Staying ahead of these changes means ensuring your internal point-of-sale procedures align with the higher security standards your vendors will soon require.

Source: Payments Dive

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